President Barack Obama, flanked by Delaware Gov. Jack Markell, left, and Oklahoma Gov. Mary Fallin, meet about the fiscal cliff Tuesday at the White House in Washington, D.C. Treasury Secretary Tim Geithner is at right.

Written by

Jim Kuhnhenn
and Andrew Taylor

Bluster and hot rhetoric aside, the White House and House Republicans have identified areas of significant overlap that could form the basis for a final agreement after "fiscal cliff" posturing gives way to hard bargaining.

Both sides now concede that tax revenue and reductions in entitlement spending are essential elements of any deal. If the talks succeed, it probably will be because House Speaker John Boehner yields on raising tax rates for top earners and the White House bends on how to reduce spending on Medicare and accepts some changes in Social Security.